Electrosol Limited considers electricity to be the lifeblood of modern society. With the failure of Eskom to provide an $$ electrical power supply units that will enable households to enjoy the luxury of uninterrupted power. This back$-$up solution will ensure endless access to devices and appliances. As the backup electrical power supply unit is relatively expensive, Electrosol Limited chose to offer the product for sale on credit.

To improve its working capital management Electrosol Limited recently employed an ambitious, knowledgeable and progressive manager, Mariam Dube, who was responsible for all aspects pertaining to the inventory and debtors. When she started her job at the company, she discovered that credit was granted to as many of the applicants as possible and that adequate inventory was maintained to prevent stock$-$outs from occurring.

The steady monthly demand for the electrical power supply was $250$ units. The selling price of an electrical power supply unit was R$80000$ and a mark$-$up of $60\%$ on cost was used. All the sales are on credit and the collection period is $90$ days. Collection costs of approximately R$100$ per unit sold were incurred. The annual holding cost of an electrical power supply unit was $0\mathrm{.}24\%$ of the unit cost of the item. The cost of placing an order for electrical power supply units was R$50.$ The cost of capital was $15\%.$

After two months of employment Mariam Dube made the following proposals to the directors:

$$ The company should take advantage of a $5\%$ discount from the manufacturer by ordering $100$ electrical power supply units each time instead of ordering the economic order quantity.

$$ A discount of $4\mathrm{.}5\%$ should be granted to those customers who settle their accounts within $10$ days. She expects that this is likely to apply to $30\%$ of the sales.

REQUIRED

$5)$

$1\mathrm{.}3.$ Calculate the annual profit to the company, without considering Mariam $$ proposals.